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The Hindu
08-07-2025
- The Hindu
Accused in two terror attacks in India used online payment services, e-commerce platforms, VPNs: terror financing watchdog's report
Global money laundering and terrorist financing watchdog Financial Action Task Force (FATF) has said that the accused in two recent terror attacks in India used online payment services, e-commerce platforms, and Virtual Private Networks (VPNs). The FATF cited the incidents in its report 'Comprehensive Update on Terrorist Financing Risks' published on Tuesday (July 8, 2025). The first case pertains to use of online payment services and VPNs to fund a 'lone actor' terrorist act. On April 3, 2022, an individual influenced by terror group ISIL's ideology attacked security personnel at Gorakhnath Temple in Uttar Pradesh. The attack was detected during the attempt by the accused to breach security, leading to his immediate arrest. The case was transferred to the State Anti-Terror Squad (ATS) for investigation. The ATS found that the accused had transferred ₹6,69,841 via PayPal to foreign countries in support of ISIL, using international third-party transactions and VPN services to obscure the IP address. He also received ₹10,323.35 from a foreign source. A forensic report on the accused's phone revealed that he had been using a VPN for calls, chatting, and downloads to evade detection. 'Further financial scrutiny uncovered that the accused had made a payment to a VPN provider through his bank account to secure these services... the investigation also uncovered that the accused had sent money to multiple individuals identified as ISIL followers in foreign jurisdictions to support terrorist activities,' said the report. Pulwama attack During the probe into the February 2019 suicide-bomb attack on a convoy killing 40 Central Reserve Police Force (CRPF) personnel in Jammu and Kashmir's Pulwama, it was detected that an e-commerce platform was used for the procurement of materials for the terrorist attack, carried out by Pakistan-based Jaish-e-Mohammed. A key component of the improvised explosive device used in the attack — aluminium powder — was procured 'through the EPOM [E-commerce platforms and online marketplaces] Amazon'. 'This material was used to enhance the impact of the blast. As a result of the investigation, 19 individuals were charged under relevant provisions of the Unlawful Activities (Prevention) Act, including sections related to Terror Financing. Among those charged were seven foreign nationals, including the suicide bomber'. 'Terrorists have been reported to abuse EPOMs, which are occupying an evergrowing position in worldwide economic landscapes, for various purposes... criminals and terrorists can pose as multiple buyers and sellers (e.g., fraudulent/complicit online shop fronts) on the EPOMs, and use trade-based ML/TF [Money Laundering/Terror Financing] techniques, such as over/under invoicing, to transfer value (goods and funds) between each other,' the report observed. The report said terrorists have used EPOMs for procuring equipment, weapons, chemicals, and 3D-printing material. 'EPOMs can also be used by terrorists to sell items to finance their projects and operations, including lower value items that were previously not in demand. EPOMs can be used to sell items obtained through wildlife exploitation or stolen cultural artefacts,' said the report. It has been found that EPOMs can be used for fund-moving purposes inspired by trade-based money laundering schemes. Traded goods can offer a disguise for the value being transferred from one member to another of the network, as per the report. The methods of raising or transfer of funds for terror financing as highlighted in the report include trafficking of humans/ goods/ drugs/ wildlife articles, virtual assets, donations, crowdfunding, use of shell entities, shell bank accounts and immediate cash withdrawals, mobile applications, misuse of non-profit organisations, extortion, kidnapping for ransom, 'hawala' channels, etc.
The Print
08-07-2025
- Business
- The Print
E-comm platforms, online payments services being abused for terror financing: FATF
'Delegations reported on this trend by referring to the use of state sponsorship for TF (terror financing) either as fundraising technique or as part of the financial management strategy of the certain organisations engaging in terrorist acts. Several forms of support have been reported, including direct financial support, logistical and material support, or the provision of training,' the Financial Action Task Force (FATF)said. In its 'Comprehensive Update on Terrorist Financing Risks', the FATF also flagged 'state sponsorship of terrorism' and said a variety of publicly available sources of information and delegations' inputs to this report indicate that 'certain terrorist organisations have been and continue to receive financial and other forms of support from several national governments'. New Delhi, July 8 (PTI) Global terror financing watchdog FATF on Tuesday cited the February 2019 Pulwama terror attack, which killed 40 CRPF personnel, and the 2022 Gorakhnath Temple incident to say that e-commerce platforms and online payment services are being misused for terror financing. In June, the FATF, while condemning the April 2025, Pahalgam terror attack, in which 26 people killed, and saying such attacks would not have been possible without financial support, had said it would come out with a 'comprehensive analysis of terrorist financing', compiling cases provided by its global network consisting 200 jurisdictions. Giving the case study of use of e-commerce platform for procurement of materials for terrorist attack in India, the FATF said a key component of the improvised explosive device used in the attack — aluminum powder — was procured through the EPOM Amazon. This material was used to enhance the impact of the blast. In February 2019, a suicide bombing targeted a convoy of Indian Security forces in Pulwama in Jammu & Kashmir, resulting in the deaths of 40 soldiers. India's authorities concluded that the attack was orchestrated by Jaish-I-Mohammed (JiM). As a result of the investigation, 19 individuals were charged under relevant provisions of the Unlawful Activities (Prevention) Act, including sections related to TF. Among those charged were seven foreign nationals, including the suicide bomber. LEAs also recovered moveable and immovable assets connected to the attack, such as vehicles and terrorist hideouts. Indian authorities have repeatedly highlighted Pakistan's persistent support for terrorism and its funnelling of multilateral funds for arms procurement. India has consistently held that Pakistan has given safe haven to designated terrorists and according to sources, India views that such action by Pakistan warrants that the country be put in the 'grey list' of the FATF. The FATF report flagged that terrorists have been abusing e-commerce platforms and online marketplaces and said terrorists have used such platforms for their operational procurement (equipment, weapons, chemicals, 3D-printing material). EPOMs can also be used by terrorists to sell items to finance their projects and operations, including lower value items that were previously not in demand. 'EPOMs can be used for fund-moving purpose inspired by trade-based money laundering schemes. Traded goods can indeed offer disguise to value being transferred from an accomplice to another member of the network. In such scheme, the first actor would purchase items, send them to his accomplice through an EPOM, for the latter to sell items in another jurisdiction and use profit to finance terrorism,' the FATF said. The FATF in its update on TF risks also highlighted the methods used to raise, move, and manage funds and other assets for terrorist financing purposes and said online fund transfers using payment services platform offer less traceability and transparency compared to wire-transfer, making it harder to clearly identify initiators and recipients of transfers. Giving a case study on the use of online payment service and VPNs to fund lone actor terrorist act, the FATF cited the April 3, 2022, Gorakhnath Temple attempted breach incident wherein an individual, influenced by Islamic State in Iraq and the Levant (ISIL) ideology, attacked security personnel leading to immediate arrest. The financial investigation revealed that the individual transferred Rs 669,841 (USD 7,685) via PayPal to foreign countries in support of ISIL, using international third-party transactions and using VPN services to obscure the IP address. He also received Rs 10,323.35 (USD 188) from a foreign source. Further financial scrutiny uncovered that the accused had made a payment to a VPN provider through his bank account to secure these services. A comprehensive analysis of the accused's PayPal transactions, obtained via email, indicated that about 44 international third-party transactions totalling Rs 669,841 (approximately USD 7,736) had been made to foreign accounts. Additionally, the accused received funds from a foreign account through PayPal. The investigation also uncovered that the accused had sent money to multiple individuals identified as ISIL followers in foreign jurisdictions to support terrorist activities. 'Due to the suspicious nature of these transactions and the potential for TF, PayPal suspended the accused's account, thereby preventing further illicit fund transfers,' the FATF said in the case study as sourced from India's finance ministry. 'As the offer of online payment services from Fintech companies grew substantially over the last 10 years, cases of terrorists opting for those services can be observed across all contexts, especially as it offers an opportunity to diversify fund-moving channels. 'These payment services also appear attractive for terrorist organisations for the low-cost and fast money transfer solutions they offer, with possibility for enhanced opacity on initiators and beneficiaries through pseudonyms or fake accounts,' the FATF said. The FATF said Europol assesses that services are commonly used across all types of terrorist organisations. In cases involving small terrorist cells, FTFs (Foreign Terrorist Fighter), and other individual terrorists, P2P payment services have been used for procurement of military equipment, chemical components, or propaganda materials on e-commerce platforms (EPOMs). Delegations also report that EoRMT (Ethnically or Racially Motivated Terrorism) groups use peer-to-peer payment systems to sell merchandising, items conveying extremist ideologies (books, music, clothes) to sympathisers, constituting a central source of revenue for those organisations. 'Such online payment services can also be used to convey donations to larger organisations, especially in the extent that some payment mechanisms are directly integrated into social networks and content hosting services. In those cases, a single platform can be used to recruit donators, launch a crowdfunding campaign, and proceed to the transfer of funds through an online payment service. 'As it was mentioned regarding credit cards, online payment services offer less traceability and transparency compared to wire-transfer, making it harder to clearly identify initiators and recipients of transfers,' it added. PTI JD TRB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
08-07-2025
- Business
- Time of India
EPOMs, PayPal, and VPNs: Pulwama, Gorakhnath cases cited as FATF warns of online terror financing; says 'e-commerce and online payment platforms' misused
Danny generated AI Image NEW DELHI: Referring to the 2019 Pulwama attack , which resulted in 40 CRPF casualties, and the 2022 Gorakhnath Temple, the FATF on Tuesday said e-commerce and online payment platforms are being utilised for terrorist funding. The FATF's 'Comprehensive Update on Terrorist Financing Risks', a Global terror financing watchdog, highlighted state-sponsored terrorism, noting that various public sources and delegation inputs indicate ongoing financial and other support from several national governments to specific terrorist organisations. The FATF noted that delegations reported state sponsorship of terror financing as both a fundraising method and financial management strategy for certain terrorist organisations. Support manifested in various forms, including direct financial assistance, logistical aid, material resources, and training provisions, PTI reported. Following the April 2025 Pahalgam terror attack that claimed 26 lives, the FATF announced in June its intention to produce a detailed analysis of terrorist financing, incorporating cases from its global network of 200 jurisdictions. In an Indian case study, the FATF detailed how aluminum powder, a crucial component for an improvised explosive device, was acquired through EPOM Amazon to amplify the explosion's impact. "In February 2019, a suicide bombing targeted a convoy of Indian Security forces in Pulwama in Jammu & Kashmir, resulting in the deaths of 40 soldiers. India's authorities concluded that the attack was orchestrated by Jaish-I-Mohammed (JiM)." The investigation led to charges against 19 individuals under the Unlawful Activities (Prevention) Act, including terror financing provisions. Seven foreign nationals, including the suicide bomber, were among those charged. Law enforcement recovered related assets, including vehicles and terrorist hideouts. Indian officials have consistently highlighted Pakistan's ongoing support for terrorism and its diversion of multilateral funds for weapons procurement. Sources indicate India believes Pakistan's actions warrant its placement on the FATF's "grey list". The report identified terrorists' misuse of e-commerce platforms and online marketplaces for operational procurement of equipment, weapons, chemicals, and 3D-printing materials. These platforms enable terrorists to generate funds by selling items, including previously low-demand products. The FATF explained that EPOMs facilitate fund transfers through trade-based money laundering schemes. This involves purchasing items and sending them to accomplices via EPOMs for resale in different jurisdictions, using profits for terrorist financing. The report outlined methods for raising, moving, and managing terrorist funds, noting that online payment services offer greater anonymity than wire transfers, making it difficult to identify transaction participants. The report cited the April 3, 2022, Gorakhnath Temple incident where an ISIL-influenced individual attacked security personnel. The suspect transferred Rs 669,841 via PayPal internationally using VPNs and received Rs 10,323.35 from abroad. Financial investigations revealed the accused's VPN service payments and approximately 44 international third-party PayPal transactions totalling Rs 669,841 to foreign accounts. The suspect also received foreign funds through PayPal. The probe uncovered payments to multiple ISIL followers abroad supporting terrorist activities. "Due to the suspicious nature of these transactions and the potential for TF, PayPal suspended the accused's account, thereby preventing further illicit fund transfers," stated the FATF, citing India's finance ministry. The report noted the significant growth in Fintech payment services over the past decade, with terrorists increasingly utilising these services for their low cost, speed, and ability to obscure participants through pseudonyms or fake accounts. Europol's assessment indicates widespread use across terrorist organisations. Small cells, FTFs, and individual terrorists use P2P payment services for procuring military equipment, chemicals, and propaganda materials. The report noted EoRMT groups' use of peer-to-peer payments for selling merchandise promoting extremist ideologies, forming a key revenue source. Online payment services facilitate donations to larger organisations, particularly when integrated with social networks and content hosting services, enabling recruitment, crowdfunding, and fund transfers through a single platform. The report concluded that online payment services provide less transparency than wire transfers, complicating the identification of transaction participants.
NDTV
08-07-2025
- Business
- NDTV
E-Commerce Platforms, Online Payments Abused For Terror Financing: Watchdog
New Delhi: Global terror financing watchdog FATF on Tuesday cited the February 2019 Pulwama terror attack, which killed 40 CRPF personnel, and the 2022 Gorakhnath Temple incident to say that e-commerce platforms and online payment services are being misused for terror financing. In its 'Comprehensive Update on Terrorist Financing Risks', the FATF also flagged 'state sponsorship of terrorism' and said a variety of publicly available sources of information and delegations' inputs to this report indicate that "certain terrorist organisations have been and continue to receive financial and other forms of support from several national governments". "Delegations reported on this trend by referring to the use of state sponsorship for TF (terror financing) either as fundraising technique or as part of the financial management strategy of the certain organisations engaging in terrorist acts. Several forms of support have been reported, including direct financial support, logistical and material support, or the provision of training," the Financial Action Task Force (FATF)said. In June, the FATF, while condemning the April 2025, Pahalgam terror attack, in which 26 people killed, and saying such attacks would not have been possible without financial support, had said it would come out with a "comprehensive analysis of terrorist financing", compiling cases provided by its global network consisting 200 jurisdictions. Giving the case study of use of e-commerce platform for procurement of materials for terrorist attack in India, the FATF said a key component of the improvised explosive device used in the attack -- aluminum powder -- was procured through the EPOM Amazon. This material was used to enhance the impact of the blast. In February 2019, a suicide bombing targeted a convoy of Indian Security forces in Pulwama in Jammu & Kashmir, resulting in the deaths of 40 soldiers. India's authorities concluded that the attack was orchestrated by Jaish-I-Mohammed (JiM). As a result of the investigation, 19 individuals were charged under relevant provisions of the Unlawful Activities (Prevention) Act, including sections related to TF. Among those charged were seven foreign nationals, including the suicide bomber. LEAs also recovered moveable and immovable assets connected to the attack, such as vehicles and terrorist hideouts. Indian authorities have repeatedly highlighted Pakistan's persistent support for terrorism and its funnelling of multilateral funds for arms procurement. India has consistently held that Pakistan has given safe haven to designated terrorists and according to sources, India views that such action by Pakistan warrants that the country be put in the "grey list" of the FATF. The FATF report flagged that terrorists have been abusing e-commerce platforms and online marketplaces and said terrorists have used such platforms for their operational procurement (equipment, weapons, chemicals, 3D-printing material). EPOMs can also be used by terrorists to sell items to finance their projects and operations, including lower value items that were previously not in demand. "EPOMs can be used for fund-moving purpose inspired by trade-based money laundering schemes. Traded goods can indeed offer disguise to value being transferred from an accomplice to another member of the network. In such scheme, the first actor would purchase items, send them to his accomplice through an EPOM, for the latter to sell items in another jurisdiction and use profit to finance terrorism," the FATF said. The FATF in its update on TF risks also highlighted the methods used to raise, move, and manage funds and other assets for terrorist financing purposes and said online fund transfers using payment services platform offer less traceability and transparency compared to wire-transfer, making it harder to clearly identify initiators and recipients of transfers. Giving a case study on the use of online payment service and VPNs to fund lone actor terrorist act, the FATF cited the April 3, 2022, Gorakhnath Temple attempted breach incident wherein an individual, influenced by Islamic State in Iraq and the Levant (ISIL) ideology, attacked security personnel leading to immediate arrest. The financial investigation revealed that the individual transferred Rs 669,841 (USD 7,685) via PayPal to foreign countries in support of ISIL, using international third-party transactions and using VPN services to obscure the IP address. He also received Rs 10,323.35 (USD 188) from a foreign source. Further financial scrutiny uncovered that the accused had made a payment to a VPN provider through his bank account to secure these services. A comprehensive analysis of the accused's PayPal transactions, obtained via email, indicated that about 44 international third-party transactions totalling Rs 669,841 (approximately USD 7,736) had been made to foreign accounts. Additionally, the accused received funds from a foreign account through PayPal. The investigation also uncovered that the accused had sent money to multiple individuals identified as ISIL followers in foreign jurisdictions to support terrorist activities. "Due to the suspicious nature of these transactions and the potential for TF, PayPal suspended the accused's account, thereby preventing further illicit fund transfers," the FATF said in the case study as sourced from India's finance ministry. "As the offer of online payment services from Fintech companies grew substantially over the last 10 years, cases of terrorists opting for those services can be observed across all contexts, especially as it offers an opportunity to diversify fund-moving channels. "These payment services also appear attractive for terrorist organisations for the low-cost and fast money transfer solutions they offer, with possibility for enhanced opacity on initiators and beneficiaries through pseudonyms or fake accounts," the FATF said. The FATF said Europol assesses that services are commonly used across all types of terrorist organisations. In cases involving small terrorist cells, FTFs (Foreign Terrorist Fighter), and other individual terrorists, P2P payment services have been used for procurement of military equipment, chemical components, or propaganda materials on e-commerce platforms (EPOMs). Delegations also report that EoRMT (Ethnically or Racially Motivated Terrorism) groups use peer-to-peer payment systems to sell merchandising, items conveying extremist ideologies (books, music, clothes) to sympathisers, constituting a central source of revenue for those organisations. "Such online payment services can also be used to convey donations to larger organisations, especially in the extent that some payment mechanisms are directly integrated into social networks and content hosting services. In those cases, a single platform can be used to recruit donators, launch a crowdfunding campaign, and proceed to the transfer of funds through an online payment service. "As it was mentioned regarding credit cards, online payment services offer less traceability and transparency compared to wire-transfer, making it harder to clearly identify initiators and recipients of transfers," it added.
Economic Times
08-07-2025
- Business
- Economic Times
E-comm platforms, online payments services being abused for terror financing: FATF
TIL Creatives Representational Global terror financing watchdog FATF on Tuesday cited the February 2019 Pulwama terror attack, which killed 40 CRPF personnel, and the 2022 Gorakhnath Temple incident to say that e-commerce platforms and online payment services are being misused for terror financing. In its 'Comprehensive Update on Terrorist Financing Risks', the FATF also flagged 'state sponsorship of terrorism' and said a variety of publicly available sources of information and delegations' inputs to this report indicate that "certain terrorist organisations have been and continue to receive financial and other forms of support from several national governments". "Delegations reported on this trend by referring to the use of state sponsorship for TF (terror financing) either as fundraising technique or as part of the financial management strategy of the certain organisations engaging in terrorist acts. Several forms of support have been reported, including direct financial support, logistical and material support, or the provision of training," the Financial Action Task Force (FATF)said. In June, the FATF, while condemning the April 2025, Pahalgam terror attack, in which 26 people killed, and saying such attacks would not have been possible without financial support, had said it would come out with a "comprehensive analysis of terrorist financing", compiling cases provided by its global network consisting 200 jurisdictions. Giving the case study of use of e-commerce platform for procurement of materials for terrorist attack in India, the FATF said a key component of the improvised explosive device used in the attack -- aluminum powder -- was procured through the EPOM Amazon. This material was used to enhance the impact of the blast. In February 2019, a suicide bombing targeted a convoy of Indian Security forces in Pulwama in Jammu & Kashmir, resulting in the deaths of 40 soldiers. India's authorities concluded that the attack was orchestrated by Jaish-I-Mohammed (JiM). As a result of the investigation, 19 individuals were charged under relevant provisions of the Unlawful Activities (Prevention) Act, including sections related to TF. Among those charged were seven foreign nationals, including the suicide bomber. LEAs also recovered moveable and immovable assets connected to the attack, such as vehicles and terrorist hideouts. Indian authorities have repeatedly highlighted Pakistan's persistent support for terrorism and its funnelling of multilateral funds for arms procurement. India has consistently held that Pakistan has given safe haven to designated terrorists and according to sources, India views that such action by Pakistan warrants that the country be put in the "grey list" of the FATF. The FATF report flagged that terrorists have been abusing e-commerce platforms and online marketplaces and said terrorists have used such platforms for their operational procurement (equipment, weapons, chemicals, 3D-printing material). EPOMs can also be used by terrorists to sell items to finance their projects and operations, including lower value items that were previously not in demand. "EPOMs can be used for fund-moving purpose inspired by trade-based money laundering schemes. Traded goods can indeed offer disguise to value being transferred from an accomplice to another member of the network. In such scheme, the first actor would purchase items, send them to his accomplice through an EPOM, for the latter to sell items in another jurisdiction and use profit to finance terrorism," the FATF said. The FATF in its update on TF risks also highlighted the methods used to raise, move, and manage funds and other assets for terrorist financing purposes and said online fund transfers using payment services platform offer less traceability and transparency compared to wire-transfer, making it harder to clearly identify initiators and recipients of transfers. Giving a case study on the use of online payment service and VPNs to fund lone actor terrorist act, the FATF cited the April 3, 2022, Gorakhnath Temple attempted breach incident wherein an individual, influenced by Islamic State in Iraq and the Levant (ISIL) ideology, attacked security personnel leading to immediate arrest. The financial investigation revealed that the individual transferred Rs 669,841 (USD 7,685) via PayPal to foreign countries in support of ISIL, using international third-party transactions and using VPN services to obscure the IP address. He also received Rs 10,323.35 (USD 188) from a foreign source. Further financial scrutiny uncovered that the accused had made a payment to a VPN provider through his bank account to secure these services. A comprehensive analysis of the accused's PayPal transactions, obtained via email, indicated that about 44 international third-party transactions totalling Rs 669,841 (approximately USD 7,736) had been made to foreign accounts. Additionally, the accused received funds from a foreign account through PayPal. The investigation also uncovered that the accused had sent money to multiple individuals identified as ISIL followers in foreign jurisdictions to support terrorist activities. "Due to the suspicious nature of these transactions and the potential for TF, PayPal suspended the accused's account, thereby preventing further illicit fund transfers," the FATF said in the case study as sourced from India's finance ministry. "As the offer of online payment services from Fintech companies grew substantially over the last 10 years, cases of terrorists opting for those services can be observed across all contexts, especially as it offers an opportunity to diversify fund-moving channels. "These payment services also appear attractive for terrorist organisations for the low-cost and fast money transfer solutions they offer, with possibility for enhanced opacity on initiators and beneficiaries through pseudonyms or fake accounts," the FATF said. The FATF said Europol assesses that services are commonly used across all types of terrorist organisations. In cases involving small terrorist cells, FTFs (Foreign Terrorist Fighter), and other individual terrorists, P2P payment services have been used for procurement of military equipment, chemical components, or propaganda materials on e-commerce platforms (EPOMs). Delegations also report that EoRMT (Ethnically or Racially Motivated Terrorism) groups use peer-to-peer payment systems to sell merchandising, items conveying extremist ideologies (books, music, clothes) to sympathisers, constituting a central source of revenue for those organisations. "Such online payment services can also be used to convey donations to larger organisations, especially in the extent that some payment mechanisms are directly integrated into social networks and content hosting services. In those cases, a single platform can be used to recruit donators, launch a crowdfunding campaign, and proceed to the transfer of funds through an online payment service. "As it was mentioned regarding credit cards, online payment services offer less traceability and transparency compared to wire-transfer, making it harder to clearly identify initiators and recipients of transfers," it added.
